# Answer to Question #65414 in Microeconomics for K.

Question #65414

If Kelly's budget has an X intercept of 40 and a Y intercept of 60, and PY is $20,

a. What is Kellys income?

b. What is Price of good X?

c. What is the slope of the budget line?

a. What is Kellys income?

b. What is Price of good X?

c. What is the slope of the budget line?

Expert's answer

a. X*Px+Y*Py=I

0*Px+60*20=I

I=120

b. 40*Px+0*20=120

Px=30

c. Slope=-Px/Py=- 30/20=-1.5

0*Px+60*20=I

I=120

b. 40*Px+0*20=120

Px=30

c. Slope=-Px/Py=- 30/20=-1.5

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